Musings of a Poser - as defined by Brennan Manning - and now fully embracing my status as a ragamuffin dependent on the Grace of God and nothing else.

Thursday, February 01, 2007

Here's to looking out for the little guy!

In November 2005, new legislation was passed that was designed to regulate the payday loan industry in Michigan. The law goes into effect in June 2006, and requires all payday lending businesses to be licensed. Before this legislation was passed, there were no laws that declared the industry legal or illegal, and there were no laws that regulated how the industry operated. Under the new law, payday lending is declared legal, but regulations are placed on the business. Borrowers may borrow up to $600 in a one month period, but may not have more than one loan out at a time. Borrowers will have to pay interest rates at $15 per every hundred loaned in a two-week period. When annualized, this interest rate comes to 390%.

This is something that needs to be stopped. This is how the legislature steps in to protect people? You read that correctly. An eye-popping 390% interest is where the legislature capped it. This is abusive. And these things are everywhere. This is an issue for the church to take up for something to protest.

Go here to see the Governor's news release trumpeting this great accomplishment. Here is a little bit about this scourge's effect nationwide.

About Me

I'm a Renaissance Man wannabee - I keep getting into weird stuff like trebuchet construction, potato mortars (really cool), bat house construction and strange things like that. I'm over 40, self-employed and the pastor of the Hobart Church of the Nazarene. I married way up, and have two wonderful daughters who continue to amaze me.